There's lots of IRS authority (or precedent) for a local church or a denominational body to designate a minister's retirement benefits as housing allowance: 1. Audit Guide: Ministers: Market Segment Specialization Program 2. Letter Rulings 7734028, 7939077, and 8344062 3. Revenue Rulings 62-117, 63-156, and 75-22 A church is considered to be the sponsor of a 403(b) (Tax Sheltered Annuity) plan that receives the elective deferral withholdings of and matching contributions for its pastor. Accordingly, distributions from these plans qualify for housing allowance designation by the church. I find no evidence that funds in an IRA account, either originally contributed to it or rolled into it from a 403(b) plan, qualify for housing allowance designation by the church.
This blog posts answers to questions given to us by ministers and others serving in Christian ministries advancing the gospel of Jesus Christ. It also discusses other financial topics that those in gospel ministries face. We trust the information provided can be helpful to you.